Automotive giant Toyota unveiled plans to significantly expand its U.S. electric vehicle footprint, with an announcement that it will begin assembling the first U.S. three-row, battery electric SUV at Toyota Kentucky and invest an additional $2.1 billion in its North Carolina battery plant.

The company’s new battery plant allocation nearly doubles Toyota’s initial $2.3 billion investment in the North Carolina facility announced last year as part of a $5 billion initiative to increase its EV battery production capacity in the U.S. and Japan.

According to Toyota, the facility will be its hub for developing and producing lithium-ion batteries for its expanding portfolio of electrified vehicles. Production at the plant is anticipated to begin in 2025.

Toyota’s announcement comes on the heels of plans announced last month by Hyundai to invest over $5.5 billion in its first U.S. full-electric vehicle (EV) and battery plant, forming the latest in a series of major investment announcements in the U.S. aimed at dramatically ramping EV and battery capacity in the country and follows an executive order by President Joe Biden in 2021 mandating that zero-emissions vehicles make up half of new vehicle sales in the U.S. by 2030, as well as the allocation of $7 billion from the U.S. Bipartisan Infrastructure Law aimed at strengthening the U.S.’ domestic battery supply chain.

Automotive leaders GM, Ford, BMW,  Toyota, Honda and Stellantis have each announced significant investment plans in EV and battery capacity over the past several months.

Ted Ogawa, president and chief executive officer, Toyota Motor North America, said:

“We are committed to reducing carbon emissions as much as possible and as soon as possible. It is exciting to see our largest U.S. plant, Toyota Kentucky, and our newest plant, Toyota North Carolina, drive us into the future together with BEV and battery production for our expanding electrified lineup.”

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